Disney Consumer Products: Marketing Nutrition to Children. Harvard Business Case Analysis

1. Disney Consumer
Products:Marketing Nutrition to
Children
VIVEK R
NIT CALICUT

2. Founded by
Roy & Walt
Disney in
1923

3. Debut with
Steamboat
Willie

4. Academy
Award in
1932

5. First
Disneyland
opened in
1955

6. Walt Disney
passes away
In 1966

7. MICHAEL EISNER
BECOMES
CEO IN 1984

8. Valued at $32 billion in 2006

9. High Familiarity with Disney’s Characters

10. WORLD’S MOST VALUABLE FRANCHISE !!!

11. Parks and Resorts Media Networks
DCP Studio Entertainment
Four Major Business Segments

13. Responsible for extending Disney brand to merchandise
Softlines
Buena
Vista
Games
Home &
Infant
Hardlines Publishing Toys

14. Mainly Licenses
Third Party Products
CURRENT SITUATION

15. CURRENT SITUATION
Candies & Ice creams
Form Major Food
Products

16. CURRENT SITUATION
$2 Billion
Exclusive
Licensing Deal
with McDonalds

17. WHAT IS THE PROBLEM
THEN?

19. Fast food
companies
were blamed
by activists,
parents &
governments

20. Disney gets flak
for its Candies
and for
associating with
Companies like
McDonald’s

21. SO WHAT DID DISNEY
DO ??

22. DISNEY TOOK IT AS AN OPPORTUNITY
TO RECONSIDER THE NUTRITIONAL
VALUE OF ITS OFFERINGS AND TOOK
THE FOLLOWING STEPS

23. • Develop Moderately
Priced and Position as a
Fun Line of Products
Specifically for Children
• Fill The Gap Between
What Children Wants &
What Moms Buy

24. • Provide High Quality,
Portion Controlled,
Good Taste and Less
Fat & Sugar Products
Which will be
Requested by Children
• Restrict ‘treats’ to 15%
of Product Mix While
Focussing on Main
Meals, Side Dishes,
Snacks and Drinks

25. ‘BETTER FOR YOU’
NUTRITIONAL
GUIDELINES BY DCP

26. Products to :
• Be minimally processed
• Have controlled levels of
sugar and sodium
• No trans or hydrogenated
fats
• Limit calories by
reformulation or portion size
• Minimal use of additives
• Promote fiber & calcium

27. • 41% of the products already compatible
• 28% had to be phased out
• Licences of incompetent and unwilling
licensees to be terminated
• Sourcing (Imagination Farm) and
Direct To Retail (Kroger) strategies
adopted

28. IMAGINATION FARMS
Licensee to market fresh fruits & vegetables under the
name of ‘Disney Garden’
‘Taste, Nutrition & Magic !’

29. THREE PRONGED STRATEGY
ADOPTED

30. Differentiate
Commodity Produce
Through Promotion

31. Create Value-added Products
Through Product Preparation
or Packaging

32. Develop Exclusive
Produce Varieties that
Would Yield More Child
Friendly Foods

33. PLU Stickers
adorned with
Disney
characters used
to differentiate
between
commodities

34. Largest Pure Grocery Retailer in the U.S.
Direct To Retail
Relationship
12% of the U.S. Grocery Market

35. DISNEY MAGIC SELECTIONS
A Kroger Corporate Brand
Satisfying Disney’s
‘Better for You’
Nutritional Guidelines

36. Introduced Two New
Mickey Personas

37. For Packaged Goods

38. For Farm Goods
FARM MICKEY

39. DTR RELATIONSHIPS WITH
BIGGEST SUPERMARKETS IN
EUROPE

40. CHALLENGES

41. PRICING
Premium Ricing
Or
Affordable Pricing??

42. GROWTH & DISTRIBUTION
Competition Between
Disney Garden
&
Disney Magic Selections

43. LEGACY
Preference to
Legacy
or
Current Strategy

44. COMPETITION
• Nickelodeon
• Sesame Workshop
• Warner Bros

45. FUTURE PROSPECTS

46. COOKERY SHOWS
FOR
CHILDREN

47. Exercise Programs
to Supplement
Nutritionary Efforts

48. FOOD SERVICE

49. RESTAURANTS

51. RECAP
• HISTORY
• CURRENT SITUATION
• PROBLEM FACED
• NEW SITUATION
• STEPS TAKEN
• CHALLENGES
• FUTURE PROSPECTS

52. “Created by Vivek R, NIT
Calicut,during an internship
with Prof. Sameer Mathur,
IIM Lucknow. ”